Asante Groups call for the Ratification of Mining Lease Agreement between ABL and Government
The people in the Tano Offin Forest Belt, together with main Asante groups namely Asante Kotoko Society, Asanteman Community Foundation and Royal Society of Asante Researchers, (ROSACH) of the Ashanti Region have expressed strong support for the mining lease agreement between the Government of the Republic of Ghana and the Ashanti Bauxite Limited (ABL).
The groups have also called on the government to see to the ratification of the Mining Lease agreement, which was laid in the 8th Parliament on 16th July 2024 and still pending in the 9th Parliament.
“We the community members, are demanding that this agreement should be ratified for ABL to start work or the government should not bring any other company to their land to extract the bauxite,” the group demanded.
At a press conference held at the National House of Chiefs at Manhyia on Sunday, March 23, 2025, Charles Wilberforce Nuako, chairman of the groups, called on the government to ensure that the agreement, which was executed on May 14, 2024, between the Government and the ABL, currently awaiting ratification by Parliament, is ratified during this parliamentary session before the first rise to pave way for the community to start work.
Background
In 2019, Ghana Integrated Aluminum Development Corporation (GIADEC) commenced a three-round investor engagement process aimed at identifying and selecting potential strategic investors to partner with GIADEC to develop the Integrated Aluminium Industry (IAI). At the start of the Investor Engagement Rounds, 39 companies requested for the Round 1 invitation documents in order to participate in the process. After the three Investor Engagement Rounds, Rocksure was selected as the first strategic investor.
In September 2021, GIADEC signed a Heads of Terms (HoT) agreement with Rocksure, by which Rocksure was to carry out exploration of Block B containing hills 4,5 and 6 out of a total of 10 hills within the Nyinahin-Mpasaaso bauxite deposit and subsequently form a joint venture company with GIADEC to execute Project 2, that is to develop a bauxite mine in Block B with a refinery solution.
Rocksure was also enjoined to undertake an Environmental Baseline Study to identify all environmental and social impact issues within the area for redress and carry out a Refinery Pre-feasibility Study. Rocksure successfully completed the exploration work and produced a Mineral Resource Estimate (MRE) report in accordance with JORC Code 2012. Rocksure has also completed an Environmental Baseline Study and a Refinery Pre-feasibility Study. The MRE report, which established bauxite resources of commercial quantities, was presented to the Former President, H.E Nana Addo Dankwa Akufo-Addo, at the Jubilee House on 14th November 2023.
The MRE report was also presented to the Asantehene, Otumfuo Osei Tutu II at his Manhyia Palace in Kumasi. Otumfuo blessed the partnership between Rocksure and GIADEC, and together with his sub-chiefs pledged their support for Project 2.
Over the years, GIADEC engaged the Nyinahin-Mpasaaso communities within the mining catchment area to build a partnership of trust and has established an active presence in each community, through a “19-member Committee”, with membership drawn from opinion leaders of the communities, including traditional leaders, representative groups, and civil society organisations. The communities within the mining catchment area were been engaged to make input into the whole process of Project 2 (mining and provision of a refinery solution) to ensure the Project 2 is beneficial to the community, which therefore was given the social licence to operate for the Project 2.
A Joint Venture (JV) company known as ‘Ashanti Bauxite Limited’ (ABL) between Rocksure and GIADEC incorporated to execute Project 2, to develop a bauxite mine in Block B with a refinery solution. Based on the Mine Feasibility Study presented to the Minerals Commission (Mincom), ABL exhibited the financial, technical, and human resources requirements to undertake Project 2 efficiently. The NPP Government, therefore, granted ABL a Mining Lease. The then Minister of Lands and Natural Resources laid the Mining Lease in Parliament and sought Parliamentary ratification in accordance with Article 268(1) of the Constitution and Section 5 (4) of Act 703
Key Highlights of the Agreement:
Government Participation: The Government, through the Ghana Integrated Aluminium Development Corporation (GIADEC), holds a 30% equity stake in ABL, with 10% as a carried interest.
Local Employment: During the prospecting phase, approximately 80% of the workforce were local community members. This trend is expected to continue, providing significant employment opportunities.
Growth and sustainability Levy and Community Development Fund: ABL is committed to pay 3% of his revenue towards Growth and Sustainability Levy to the government which the community will benefit. In addition to that the company is committed to establish a Community Development Fund. This fund aims to address critical infrastructure and social amenities, including schools, hospitals, roads, water, and electricity in the mining communities.
Refinery Development: As part of its commitment to adding value to Ghana’s bauxite resources, ABL plans to develop a bauxite refinery in the Nyinahin-Mpasaaso area. This refinery will process bauxite into alumina, contributing to the establishment of an Integrated Aluminium Industry in Ghana.
Environmental Stewardship: The company has pledged to adopt measures to prevent environmental degradation, ensuring the protection of local water bodies and ecosystems.
Economic Growth: The establishment of the bauxite refinery is anticipated to generate employment and stimulate local economic activities, further enhancing the region’s development.
The community leaders commended the transparent and inclusive approach taken by GIADEC and ABL, noting that previous exploration efforts were unsuccessful, making this development particularly significant.
They expressed
confidence that the mining operations and refinery development will commence promptly upon parliamentary ratification, bringing tangible benefits to the Ashanti region and Ghana in general.
